Credit Score Basics > What does "AF" on my credit report mean?

What does "AF" on my credit report mean?

Wollit Team1 minute read · Updated 23rd September 2024

When you look at your credit report in the UK, you might see some abbreviations that can be confusing. One of these is "AF."

AF usually stands for "Affordability Check." This means that a lender has checked to see if you can afford to repay a loan or credit. Here’s what you need to know.

Why do I have “AF” on my credit file?

Lenders do affordability checks to make sure that borrowers can pay back their loans. This is especially important when applying for big loans like mortgages.

During an affordability check, lenders look at your income, expenses, and any existing debts to see if you can comfortably pay back the new loan along with your current financial commitments.

Sometimes, these checks show up on your credit report. That’s it. The "AF" status simply shows that they have checked your financial situation.

You shouldn’t stress about it – this can be a good sign because it shows lenders are being careful about lending money.

How does "AF" affect my credit score?

The "AF" status itself does not directly change your credit score. However, the results of the affordability check may affect your ability to get credit in the future.

On one hand, if you pass the affordability check, this obviously means a higher chance of getting approved. However, if you don’t meet the lender’s criteria during this check, it could lead to a denial of your application.

This won’t affect your credit score, but if you apply for too many loans in a short amount of time, your credit score might go down a bit. This is because each application involves a hard credit check, which stays on your credit report for up to two years and can temporarily lower your score.

What should I do if I have “AF” on my credit file?

Nothing much – again, it does not negatively affect your ability to get a loan or mortgage.

At the end of the day, though, what lenders care most about is your credit history.

Luckily, now there are many apps that can help you build and improve credit.

One such app is Wollit. Wollit is an app that reports your monthly subscription as loan repayment, helping you build a history of timely repayments without the risk of getting hit with high-interest charges or going over your card limit. It can even report your monthly rent payment to Experian, adding another line in your credit report that shows lenders you're responsible and pay your bills on time.